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Germany's Employment Figures Hit Record High Amid Economic Slowdown

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Wojciech Zylm
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Germany's Employment Figures Hit Record High Amid Economic Slowdown

In a distinctive milestone, Germany's employment figures have surged past the 46 million mark for the first time during the summer, defying the gloomy economic backdrop. The Federal Statistical Office announced this historic high of 46.04 million employed persons which is a record since Germany's reunification.

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Resilient Job Market Amid Economic Slowdown

Despite a potential recession lurking around the corner, with a 0.1 percent contraction in GDP during the third quarter, and consumer spending experiencing a slump due to loss of purchasing power, the job market has demonstrated resilience. This resilience is reflected in the marginal increase of 7,000 jobs from the previous quarter, marking a slowdown in employment growth compared to more significant gains earlier in the year. The previous peak was at 45.96 million at the end of 2022.

Employment Growth Across Sectors

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Various sectors, including public services, education, health, trade, transportation, hospitality, information, communication, industry, and construction have all witnessed job increases. Notably, the number of self-employed individuals and assisting family members has stabilized. This stabilization is a welcome shift after witnessing a decline for over a decade, bringing the numbers back to the levels of the same quarter in the previous year.

Looking Ahead

Forecasts for Germany's economy suggest a 0.3% contraction in 2023 due to high inflation and tightening financing conditions affecting consumption and investment. Nevertheless, optimism prevails as projections indicate a rebound in GDP growth to 0.8% in 2024 and 1.2% in 2025, fueled by recovering domestic and improving foreign demand. With a 0.8% rise in employment in the first eight months of 2023 and an expected decrease in unemployment coupled with a resumption of real wage growth, the future of Germany's job market looks promising.

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